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What is a Foreign Trade Zone?

The United States of America’s Foreign-Trade Zone program was designed under the general concept of “free zones”, which for all intents and purposes are geographical areas that receive preferential treatment on tariffs and taxes on commercially exchanged commodities. Across the globe, the concept of using an FTZ varies from country to country in both name and application. For instance, “free zones” are called Free Zones in Dubai and the European Union, Special Economic Zones in India, Free Economic Zones in South Korea, Free Trade Zones in Brazil, and Foreign-Trade Zones in the United States, and every country’s free zone concept is applied uniquely to that country’s economic development strategy.

Within the United States, a Foreign-Trade Zone (FTZ) is a physical location that is granted special privileges by the U.S. Federal Government for the importation and exportation of merchandise to/from the United States of America. Although an FTZ site is physically located on U.S. soil, for customs purposes, the site is considered to be located outside of the Customs Territory of the United States and all merchandise entering an FTZ site is considered international commerce. For additional insight to the workings of an FTZ, please see the two links below or contact us directly.

Visit ourHow FTZs Workpage to understand the dynamics of the FTZ No. 79 Program, to help lower your importation and exportation costs.